COMMODITY VALUE CHAIN ENHANCEMENT PROJECT
- INTRODUCTION
The Ghanaian agriculture sector, though the largest employer of the Ghanaian workforce still faces several challenges. These include but not limited to production-oriented interventions – not considering market demands and thus result in over or undersupply of agricultural products, low interactions/ networking between the different stakeholders in the sector, low managerial capacities of stakeholders and non-availability or bad/poor quality of services among others. Value Chain Approach (VCA) is a sure way to address the challenges enumerated above.
It is against this backdrop that the Presbyterian Development & Social Services (PDSS) and the Northern Rural Growth Programme (NRGP) entered into a one-year contract to facilitate Shea and Baobab value chains development project under the Women’s Crop window.
The project, funded by African Development Bank (AfDB) and International Fund for Agricultural Development (IFAD) seeks to facilitate value maximization along the commodity chains by building capacities and bringing together the disjointed value chain actors of these commodities in ten districts in the Upper East and Northern Regions (ie. Builsa North, Builsa South, Garu Tempani, Binduri, Pusiga, West Mamprusi, East Mamprusi, East Gonja, Savelugu Nanton and Tolon districts). The direct target beneficiaries for the project stand at twenty thousand (20,000) and five thousand (5,000) for Shea and baobab respectively.
This report captures activities implemented and the results achieved during the project implementation period. Key activities implemented within the one year period of the project included; carry out baseline survey, community entry and beneficiary profiling, training on group dynamics and best production practices, linking FBOs to value chain committees, linking FBOS to other chain actors such as buyers / aggregators and financial institutions, organize district level actors platforms of the targeted crops , Facilitate the development and signing of 25 MoUs, development of commodity business plans and monitoring.
- RATIONALE AND ONJECTIVES OF THE ENGAGEMENT
- The rationale of the project is to help address production challenges to increase productivity and incomes of the rural poor using the value chain approach.
- Building capacities of farmers to produce to meet quality standards of buyers to be able to sell and increase their incomes.
- To strengthen the commodity value chains and make producers well positioned in the chain.
Main Objective: Main Objective: To strengthen commodity value chain scheme (shea and Baobab) to increase productivity and the income levels of women for sustainable growth and development
Sub Objectives:
- To train and develop capacities of 1000 producer groups to increase productivity. in value chain concepts in ten (10) districts in two regions in Northern and Upper East.
- To facilitate business development and market linkages and access for 1000 producer groups to increase incomes
- To facilitate the strengthening of commodity value chains for improved performance
Summary of Contractual Mandate
- Implement and facilitate the development of commodity (shea & baobab) Value chains
- Profile and build capacity of groups
- Register groups as business entities
- Conduct market survey and analysis and link groups/ farmers.
- Develop data base of actor groups
- Link actors along the chain to service providers
- APPROACH AND METHODOLOGY;
PDSS employed a number of approaches /methodologies in the execution of the assignment. These methodologies are discussed below;
- Awareness creation- Community level senstisations were carried out to get community members informed about the project and some specific issues. Community entry protocols were followed and for a / durbars organized to implement activities. These were done through the community level structures.
- Interviews and Focus group discussions; Questionnaires and face to face interviews were used to collect data on project indicators and analyze. These were effective in the baseline survey and market research data gathering
- Capacity building(Training); Community level and institutional level trainings were conducted which helped the groups to acquire skills and knowledge in such areas as group dynamics, business management, quality control, marketing and market research, good governance, and conflict management for their effective functioning as groups and individual entrepreneurs. One of the main tools used was workshops delivered through presentations, small group discussions and demonstrations
- Research and information sharing; PDSS also conducted research and gathered secondary and primary data on various commodity value chains, market and marketing, business promotion and innovations. Information was shared to value chain actors and other stakeholders through stakeholders’ platforms and group meetings.
- Project reviews were also used as medium of information sharing and re-strategizing.
- OUTREACH– The geographic coverage of the intervention and number of participants
Table 1
| STATION | DISTRICT | REGION | Numberof Participants | ||
| Shea | Boabab | ||||
| PAS M7 (Tamale) | Savelugu, Tolon, East Gonga | Northern | 9,657 | ||
| PAS Langbensi | West Mamprusi, East Mamprusi | Northern | 3,665 | 165 | |
| PAS Garu | Binduri, Garu, Pusiga | Upper East | 5,584 | ||
| PAS Sandema | Builsa North, Builsa South | Upper East | 3,440 | 814 | |
| Total Targets and Achieved. | |||||
| Commodity | Targets | Targets Achieved | |||
| Shea | 20000 | 22346 | |||
| Baobab | 5000 | 979 | |||
| Total | 25000 | 23325 | |||
- IMPLEMENTING RESULTS
Main Objective: To develop and implement strategies for the various commodity chains under the women commodity window to increase productivity and incomes
- Sub Objective 1 To train and develop capacities of 1000 producer groups to increase productivity.
- Brief description of the objective: This objective sought to build the capacities of producer/ picker and processing groups in Northern and Upper East to overcome their production challenges and increase production volumes and quality of products to meet market demand
Description of key activities implemented: The activities implemented and results under this objective are narrated in the table below.
| Key Activities | Description of activity | Achieved Results (Output / Outcomes) | Narration of Output /Outcomes | |
| Start-up activities-
– Inception workshops
Engagements with MoFA |
A one day inception workshop was organised for project staff to help staff understand the project for effective implementation .The consultant to the project at PDSS level took participants through key aspects of the project such as the activities, indicators and the general requirements of the project and the roles of the implementation team members. | 18 team members (staff and management) including the consultant and upper presbytery chairperson participated
Knowledge on project enhanced for smooth take off. |
The participants had full understanding of the project. The roles of the staff were outlined that facilitated the smooth implementation of the project. | |
| PDSS held briefing meetings with the various districts department of Agriculture. The project was introduced to the department of agriculture
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The departments of agriculture supported in the project implementation.
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The departments provided data on commodity value chain activities in the districts. Agriculture extension agents also assisted in community sensitisations and groups and individuals profiling. | ||
| Conduct baseline and other diagnostic studies on each value chain and actors
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Ten district levels baseline surveys were conducted to gather existing data on key indicators of the project. Focus group discussions and face to face interviews were used to capture data and the data analyzed
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7,000 individual beneficiaries baseline data collected
Average production volumes of shea for 2015 = 3 maxi bags, Average net income of shea for 2014= GH₵ 76, 2015= GH₵ 102.82 Average Baobab quantity of powder 40kg Average net income -GH₵ 40.00 |
Individual baseline data were collected on personal information, household data, economic activities, production, source of inputs, marketing arrangements and incomes etc
Low production volumes and low prices were identified as challenges. |
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| Conduct value chain diagnosis for 800 shea and 200 Boabab groups
Diagnostic studies were conducted on the shea and baobab value chains. These were done through interactions with groups, stakeholders and key actors in the shea and baobab value chains |
Value chain diagnosis conducted in 10 districts
Value chain diagnosis conducted involving 300 groups (266 shea, 34 babobab) Shea and baobab value chains are disjointed and weak. |
The shea and baobab commodity value chains were weak. The various actors identified operated individually. Pickers did not have any formal relationship with any other actor and lack marketing information. They only sell in the open market as and when the need arises. This has resulted in low incomes. | ||
| Form actor categories in value chains and develop their capacities
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Train 1000(Shea 800 and Boabab 200) group executives in group dynamics and value chain linkages
Community level trainings were organized for groups on group dynamics to build the capacities of the group members to become formidable and cohesive.
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504 (466 shea, 18 baobab) groups (12600 members ) capacities enhanced
Formidable and cohesion groups in place |
The groups were trained on group formation, leadership, records keeping, conflict management and other relevant areas. This has made the groups to be formidable and functioning. | |
| Identify and profile various groups | Carry out community entry – Meetings held with sub chiefs, assembly persons and other opinion leaders to introduce the project and solicit their support in rolling out the intervention in their communities. | A number of Community entries undertaken.
Communities accepted the project. |
All community sensitisations were preceded with community entries. The sub chiefs, assembly persons and other opinion leaders all accepted the project and organised the community meetings. The presence of the community leaders at the meetings and their inputs contributed to the general acceptance of the project by community members.
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| Sensitisations to identify groups
Community durbars were used for sensitisation on Shea & baobab VC concept / strategy to enhance productivity and incomes. During the community-wide meetings, the purpose and scope of the project was explained. Participants were also taken through the value chain concept
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A number of community durbars held
842 (790 shea, 52 baobab) groups profiled
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The community durbars were organized by the community leadership and facilitated by project staff. The groups identified have been profiled and are on the project | ||
| Profile 1,000 groups (25,000 ben.) ( 800shea groups; 20,000 ben., 200 baobab groups; 5,000
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The groups profiled consisted of 215 existing shea groups and 627 new groups. All baobab groups were new groups.
Data of the groups captured.
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| Sensitisations of groups on commodities(Shea, baobab)
Group meetings were organized at community levels and sensitisations conducted on project activities and expected results.
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A number of sensitizations held
842 (790 shea, 52 baobab) groups sensitized. 23,325 ( 22,346 Shea, 979 baobab) beneficiaries sensitized on the commodities Beneficiaries knowledge enhanced on project
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The group members were abreast with the activities and demands of the project.
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| Facilitate capacity building of 1000 producer groups to adopt best production practices
-Community level trainings were organized for shea nuts pickers on shea picking and quality processing. A consultant engaged and he trained shea butter processors on quality butter processing to meet market demands. |
504 (466shea, 18 baobab) groups trained on best production practices.
Quality nuts and butter produced. Increase incomes
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Shea picker’s knowledge enhanced on safety measures during shea nuts picking and processing and quality standards. The quality of butter processed is improved and packing attractive than before. Market access improved and incomes increased.
Need to train more women so as to processed larger quantities to supply international markets.
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| Track production volumes and sales
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Total production volumes of shea nuts of 13290 pickers was 5330.80mt.
Average net income per picker was GHC 238.005 Production volumes of baobab powder of 709 farmers =31.90mt Gross income = GHC 79762.5 Net Income = GHC 63810
250 members (24 groups) sold 10,300kg of baobab seed Gross income of GHc 5,150.00. Net income of GHc 3862.50 |
Yield for both shea and baobab was very low in 2016. However, with trainings and value chain linkages farmers went the extra mile to mobilise / picker shea nuts and baobab fruits
The quality of the nuts and baobab powder facilitated sales and increase in incomes. Some farmers who did not know the value of baobab seeds but through the project were enlightened were able to sell the seeds and made incomes |
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Shea butter processing centre @ Chuchuliga Quality shea butter processed Truck loading Baobab seed –Builsa North
Table 2 Summary of Groups profiled
| Commodity | Station | 1st and 2nd Quarters | 3rd Quarter | Grand Total | ||||||||||
| # Groups | Male | Female | Total | # Groups | Male | Female | Total | |||||||
| Shea | Presby Mile 7 | 250 | – | 8,712 | 8,712 | 27 | 945 | 945 | 9,657 | |||||
| PAS-G | 208 | 30 | 5,154 | 5,184 | 20 | 400 | 400 | 5,584 | ||||||
| PAS-L | 90 | – | 2,070 | 2,070 | 55 | 20 | 1575 | 1595 | 3,665 | |||||
| PAS-S | 100 | 24 | 2,456 | 2,480 | 40 | 960 | 960 | 3,440 | ||||||
| Sub Total | 648 | 54 | 18392 | 18,446 | 142 | 20 | 3880 | 3900 | 22,346 | |||||
| Baobab | Presby Mile 7 | – | – | 0 | 0 | |||||||||
| PAS-G | – | 0 | 0 | |||||||||||
| PAS-L | 10 | – | 45 | 45 | 8 | 0 | 120 | 120 | 165 | |||||
| PAS-S | 24 | 10 | 456 | 466 | 10 | 0 | 348 | 348 | 814 | |||||
| Sub Total | 34 | 10 | 501 | 511 | 18 | 0 | 468 | 468 | 979 | |||||
| Grand Total | 23,325 | |||||||||||||
Sub Objective 2 (SO2): To facilitate business development and market linkages and access for 1000 producer groups to increase incomes.
This objective is aimed at building the capacities of project beneficiaries to be business oriented in their approach to production, processing and marketing. They are expected to develop relationship with other actors especially buyers, access market information and markets to sell and increase incomes
Description of key activities implemented. The activities implemented to support farmers to properly develop their business and be able to access markets are described below.
| Key Activities | Description of activity | Achieved Results (Output / Outcomes) | Narration of Output /Outcomes |
| Conduct market analysis of selected commodities | Conduct market surveys and analysis.
A consultant was engaged and he carried out market survey of the Baobab and Shea. He gathered primary and secondary data which was analyzed. Market sources identified and consultations conducted
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Market survey conducted and analyzed.
Market survey report in place Various market identified eg YABCO Company for baoba, PBC Ltd, Gbanzab, 3F Africa |
The market survey report was presented to NRGP. The quality and volumes required by each market source was captured |
| Organize platforms to share market survey results
Community level platforms involving producers, marketing agents, and other relevant stakeholders were organized and marketing information shared
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A number of District level actor fora and community level meetings were organised.
Market survey results shared with 19,905( 19,873f and 32m) group members. 40 marketing agents across the 10 districts participated in the information sharing
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The sharing of the marketing information enlightened producers on marketing avenues, quality standard requirements of each commodity, and bargaining. This gingered the producers to produce more quality produce to sell and make money.
Sharing of market survey information with groups |
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| Facilitate the signing of MoUs between farmer groups and aggregators | Mou signed with 3F Africa to purchase shea nuts.
Informal agreements reached with Molash Baruch Company Ltd, PBC Ltd, Karsajan Ltd, Alhaji Gbanzab, YABCO Company for baobab powder |
Shea nuts were aggregated by some lead farmers and sold to the respective companies that they served as agents. | |
| Facilitate business plan development and registration of FBOs as cooperative entities
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Organize T O T training on agri-business development and gender mainstreaming for 18 staff
A one day training workshop was organized. Resource persons were engaged to facilitate the training |
One-day ToT training organized 18 (5f, 13m) staff participated
Staff knowledge enhanced. Staff facilitated farmer level trainings |
Participants were taken through business planning, budgeting, record keeping as well as communication skills to enable them train farmers. Staff in turn facilitated the community level trainings for farmers in the 10 districts.
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| Train 1750 Shea and Boabab smallholder farmers on agri-business development
Community level trainings were organized. The staff who went through the T O T facilitated the trainings. The trainings captured the following areas; -business planning, record keeping, costing and budgeting, financial management, customer care, packaging Rural financing (VSLA)
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10,753(10,733f, 20m) small holder farmers trained
Farmers knowledge enhanced 69 groups into VSLA.
9742(f) farmers funding businesses with savings and loans from the VSLA concept. Increased incomes from business. |
Knowledge acquired by farmers was used to improve on their businesses.
Agribusiness training session @PAS Mile 7, Tamale |
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| Facilitate groups assessment and registration for shea farmers’ and Boabab farmers’ groups
The district cooperative officers were engaged to carry out the assessment and registration An assessment tool was used to assess the groups Registration of qualified groups |
150 assessed, 45 qualified, 32 registered
43 old groups renewed their registered certificate
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The registered groups now have a legal backing to operate. The assessment was a motivation for the groups that were not registered to improve on their performances to enable them qualify to register | |
| Facilitate the development of Commodity Business Plans (CBPs) and enterprise business plans (EBPs)
A consultant was contracted and he facilitated the development of the CBPs. NRGP engaged a consultant to trained staff on business development and profitability analysis. PDSS staff trained 457 groups on business planning and profitability analysis |
Commodity business plan of the Women’s crop window in place
65 groups assisted to develop EBPs. The groups have already been taken through profitability analysis Three groups from PDSS produce quality business plans and won support from NRGP productive investment fund. 13 Tricycles procured and delivered to two groups to enhance transportation of shea nuts, sorghum and other produce to aggregation centers and markets
1 shea butter processing centre constructed for 6 groups
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The commodity business plans served as a guide to identify viable businesses and marketing channels.
A cross section of the tricycles to be handed over to Asida Nyaae Group
The Shea butter processing center The 6 groups were supported with a Shea processing center and tricycle. The Shea processing center comprise of an equipment room, a boiling room with stoves, a roasting room, a bi-product pit and a washing and drying floor. The machine room is equipped with a crusher, a grinding machine and a kneader.
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Sub Objective 3 (SO3): To facilitate the strengthening of commodity value chains for improved performance
The shea and baobab value chains were seen to be weak and needed to be strengthened to ensure all actors along the value chains effectively perform their roles. Facilitating value chain actor’s linkages promotes access to services such as financial, marketing, and technical and value addition for increased incomes
| Key Activities | Description of activity | Achieved Results (Output / Outcomes) | Narration of Output /Outcomes |
| Link actors along the chain to service providers (finance market access & extension services) based on need | Train 1000 (800 shea and 200 Boabab) group executives in value chain linkages
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1500 group executives trained in value chain linkages
Participants’ knowledge enhanced.
Groups received services from other actors Groups linked to marketers/ buyers Increased incomes |
The group executives acquired knowledge in value chain concept
Skills were acquired in value chain linkages facilitation Groups received transportation services from motor king operators The groups easily access markets and bargain well for fair prices. |
| Facilitate or organize 1 district level actors platform in each district of the targeted crop
Value chain actors of shea and baobab were identified in all ten districts. District level interactive platforms organized on commodity basis. Services and products required by actors discussed and linkages facilitated. |
10 value chain actors platform held
133 (87m, 46f) actors participated Effective collaboration among actors
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The actors that participated included, transporters, producers/pickers, processors, aggregators, technocrats eg trainers, department of agriculture, district level policy makers etc. | |
| Facilitate the development and signing of MoUs 800 shea and 200 Boabab Groups
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Mou signed with 3F Africa and PBC Ltd to purchase shea nuts. A number of informal agreements reached with agents of bigger companies
Formal MOUs yet to be signed with Molash Baruch Company Ltd and Natura West African Shea Butter who are into shea butter. 5330.80 mts of shea sold to aggregators |
3F Africa, PBC Ltd and companies like, Karsajan Ltd, Gbanzab Company and local aggregators purchased produce from farmers.
Increased incomes. Local aggregators’ bought from farmers
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| Facilitate the establishment of district level value chain in Shea and Boabab networks/committees
Facilitate the strengthening of district level value chain networks/ committees
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Strengthen linkages of FBOs with value chain committees
6 secondary level FBOs linked to District level committees.
Increased incomes |
The FBOs sat in district level value chain committee meetings. Relationship between the SFBOs/ FBOs and the DVCCs improved. |
Sub Objective 4 (SO4): To track project progress, document and share project results
| Key Activities | Description of activity | Achieved Results (Output / Outcomes) | Narration of Output /Outcomes |
| Develop Data base of all groups in the Value Chain | Develop data base management systems for Shea and Boabab | Data of all groups profiled captured and documented captured
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| Document success stories for replications in other areas or up scaling of same intervention | Production of 200 leaflets on best practices
Media coverage |
The successes of 9 shea pickers groups documented and shared with other farmers. Four shea butter cooperatives success stories documented and shared to community durbars and through radio stations. | |
| Conduct Programme reviews, supervision and monitoring | Periodic reviews with stakeholders
District quarterly review meetings held and project implementation results and challenges discussed
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20 district level stakeholder reviews held.
273 (183m. 90f) across the ten districts participated. Effective collaboration in project implementation
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District level stakeholders review meetings were carried out. MoFA representatives, District Assemblies representatives, Buyers, aggregators, producers/ pickers of the commodities and some farmer groups’ representatives participated. They were briefed on the progress of implementation of the project. Issues of sustainability were discussed as the project was entering into the last quarter |
| Participation in NRGP Partner review meeting | One review meeting held.
3 (m) staff participated in the meeting in Wa PDSS staff participated in four NRGP quarterly review meetings with partners Improved project performance |
PDSS as well as other partners made presentations on work done within the quarter and challenges encountered. There were inputs from participants and experiences shared. | |
| Monitoring & supervision
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PDSS management conducted monitoring visits to a number of project communities in 10 district level monitoring visits
.NRGP team conducted 2 monitoring visits to PDSS operational areas Improved documentation. |
A number of gaps identified Measures to fill gaps identified. Improved project results or their operations. The team interacted with project staff on the progress of work. Field visits were made and station level documentation inspected
NRGP Team / Consultant Monitoring Visit |
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| Write quarterly, annual and special reports
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Activity reports written at station levels.
Quarterly reports collated The quarterly reports were collated and sent to NRGP |
Report captured activities implemented during the period | |
Table 3. Production and incomes
Shea Nuts
| Districts | 2014 | 2015 | 2016 | |||||||
| Average Net Income (GHc) | Average Net Income (GHc) | No of groups that aggregated/ mobilized | Total beneficiaries | Prod volumes(kgs) | Qty sold(kg) | Gross Income(GHc) | Prod cost (GHc) | Net Income (GHc) | Average Net income | |
| Binduri | 62 | 61 | 54 | 1296 | 453600 | 453600 | 430920 | 231336 | 199584 | 154 |
| Garu Tempane | 80 | 85 | 91 | 2275 | 910000 | 910000 | 910080 | 455000 | 455080 | 200.0352 |
| Pusiga | 62 | 92 | 83 | 1577 | 630800 | 630800 | 599260 | 251050 | 348210 | 220.8053 |
| Builsa North | 70 | 90 | 67 | 1675 | –
502500 |
502150 | 451935 | 201000 | 250935 | 149.812 |
| Builsa South | 85 | 115 | 43 | 903 | 270900 | 270900 | 243810 | 121905 | 121905 | 135 |
| Savelugu | 70 | 100 | 59 | 1593 | 637200 | 618300 | 680130 | 309150 | 370980 | 232.8814 |
| Tolon | 65 | 95 | 69 | 2001 | 800400 | 800400 | 680130 | 400200 | 279930 | 139.8951 |
| East Gonga | 70 | 110 | 73 | 1825 | 730000 | 730000 | 803000 | 328500 | 474500 | 260 |
| West Mamprusi | 100 | 140 | 63 | 1638 | 655200 | 655200 | 655200 | 327600 | 327600 | 200 |
| East Mamprusi | 100 | 140 | 81 | 1863 | 745200 | 746200 | 708890 | 373100 | 335790 | 180.2415 |
| 764 | 1028 | 683 | 13296 | 5330800 |
6,317,550 |
6163355 | 2998841 | 3164514 | 1872.671 | |
| Averages of totals | 400.9326 | 238.005 | ||||||||
Achievement of indicators over the project period
Women’s crop
| District | No. of FBOs registered with Department of cooperatives | No of MOUs signed with Companies | Number of Local aggregators who bought from farmers | No. of enterprise Business plans developed by FBOs |
| Binduri | 0 | 0 | 2 | 6 |
| Pusiga | 0 | 0 | 2 | 7 |
| Garu Tempane | 0 | 1 | 3 | 5 |
| Builsa North | 1 | 0 | 3 | 5 |
| Builsa South | 1 | 0 | 2 | 7 |
| Savelugu | 10 | 1 | 3 | 4 |
| Tolon | 10 | 1 | 2 | 8 |
| East Gonga | 25 | 1 | 2 | 10 |
| West Mamprusi | 15 | 0 | 4 | 7 |
| East Mamprusi | 25 | 0 | 2 | 6 |
| Total | 87 | 4 | 23 | 65 |
| Baobab | ||||
| Builsa South | 0 | 0 | 2 | 0 |
| Builsa North | 0 | 0 | 5 | 0 |
- OBSRVED CONSTRAINTS /CHALLENGES AND HOW THEY WERE ADDRESSED
- Difficult to groom the groups to register them with cooperatives department within the short life span of project.
- Delay in release of funds
- Due to the large number of beneficiaries reached out to within one year, it will be difficult to sustain and consolidate the gains of the project by reaching out to all of small holder farmers after the project life span
How the challenges were addressed,
- Proper screening and registration of groups that met the department of cooperatives criteria.
- Project activities were pre-financed
- PDSS will mainstream project into its programmes
- NRGP and partners to roll out similar projects that will help consolidate the gains of the project
- LESSONS LEARNT
- Every product of the shea has economic value and when utilized adds income to the farmer.
- Joint monitoring of Facilitating Agencies (FA’s) by NRGP and other FA’s was a sought of peer review that helped improved on the performance of FA’s. FA’s learnt and shared experiences from each other.
- VSLA concept is helpful to beneficiaries
- CONCLUSION: The commodity value chain enhancement project was implemented over a year period. Despite the short duration of the project, it has chalked enormous successes and has improved on the livelihoods of the small holder farmers and their families. The PDSS is making efforts to sustain the project, it needs support in the area of similar interventions to help consolidate and sustain the gains made.
